Mark Travis of Intrepid Capital Management Buys Near Term Cash Flows for Long Term Value

July 2, 2017

Mark Travis is the CEO, President and a Co-Founder of Intrepid Capital Management.  In an exclusive interview with the Wall Street Transcript he outlines his investment philosophy:

“We are looking to see how quickly the free cash flows of an enterprise can get back to us as an investor, whether that’s in the equity, in terms of buyback or a dividend, and in terms of debt-repayment ability in the fixed income market.”

One of the many stocks Mr. Travis outlines in his interview is the software services company Syntel (NASDAQ:SYNT).

“Syntel (NASDAQ:SYNT)…an IT outsourcing firm predominantly with Indian work force. They’ve got some customer concentration. Their top-three clients are American Express (NYSE:AXP)State Street (NYSE:STT) and FedEx (NYSE:FDX).  This company is very embedded in financial services and health care, and they have very attractive margins. It trades for 6.3 times normalized operating profit and nine times expected free cash flow. The shares are in the high teens. We think they’re worth in the mid-20s.”

Read the rest of the exclusive interview on the Wall Street Transcript.